CoreWeave Reports Strong Revenue. The Stock Is Down Sharply.

CoreWeave signage in Times Square in New York, in May. (Yuki Iwamura/Bloomberg)

CoreWeave reported better-than-expected revenue results Tuesday afternoon. Its shares were down sharply in after-hours trading.

The company reported an adjusted earnings per share loss of  60 cents for the June quarter, compared to Wall Street’s consensus estimate for a 23 cent loss, according to FactSet.

Revenue came in at $1.21 billion, which was above analysts’ expectations of $1.08 billion.

“Our strong second-quarter performance demonstrates continued momentum across every dimension of our business,” CoreWeave CEO Michael Intrator said in the press release. “We are scaling rapidly as we look to meet the unprecedented demand for AI.”

CoreWeave shares initially rose before falling 10% in late trading following the release. Investors may be taking profits on the earnings news after the stock rallied 30% this month.

On the conference call with analysts and investors, CoreWeave said it expected revenue in the current quarter to range from $1.26 billion to $1.3 billion. Analysts have been expecting $1.25 billion. For the full year, the company said revenue would range from $5.15 billion to $5.35 billion, above the $5.05 billion consensus.

In an interview with Barron’s, Intrator said the magnitude of demand outstripping supply has deepened compared to the three months ago.

He said the biggest challenge and largest bottleneck now is building out the physical infrastructure—including data center buildings, cooling equipment and electrical transformers. He also expects Nvidia’s latest GB200/GB300 NVL72 AI servers to do quite well over next four quarters as the demand for compute is “insatiable.”

Founded in 2017, CoreWeave provides large-scale access to graphics processing units, or GPUs, via the cloud.

It has been a wild ride for CoreWeave stock since the company priced its initial public offering at $40 in late March. While that was lower than the expected range, the stock has since more than tripled. CoreWeave’s upbeat initial earnings report, plus robust forecasts of 2025 capital spending by large technology companies during earnings season, have lifted the shares.

In May, when CoreWeave disclosed its first quarterly results as a public company, it reported better-than-expected revenue and issued financial forecasts that were more upbeat than anticipated. A day after the report, CoreWeave revealed in a filing with the Securities and Exchange Commission that it has entered into an agreement with OpenAI for additional services worth up to $4 billion through April 2029.

Then in early July, CoreWeave announced an agreement to buy data-center infrastructure partner Core Scientific in a deal worth $9 billion of stock at the time.

Write to Tae Kim at tae.kim@barrons.com